Stock markets have shrugged off their anxiety over rising government bond yields, and rallied sharply as optimism over the recovery growth.
Britain’s FTSE 100 closed at a near three-week high, while European markets posted their best day in four months. Germany’s DAX surged to a new record, with banks and carmakers among the big risers.
The rally came as investors focused on the prospects for an economic revival this year, as Covid-19 vaccinations allow businesses to return to more normal conditions.
There was also relief that the US Senate has approved Joe Biden’s $1.9tn stimulus package.
The Treasury secretary, Janet Yellen, boosted sentiment, saying the package would fuel a “very strong recovery”, and dampening concerns that inflation could spiral higher.
This drove stocks higher on Wall Street too, where the Dow Jones industrial average has just hit a new record high.
+INFO: The Guardian